The UK auction market has experienced another quiet month, according to new figures released for November.
Usually, the auction process, with no property chain and buyers and sellers entering an immediate contract, is attractive to investors.
However, the most recent data released from the Essential Information Group (EIG) indicates that auctioneers saw a fall in lots sold during the last month.
Fall in auction sales
Results show that the number of property auction lots offered fell by 7.6% during November, from 2,341 to 2,163 lots. In addition, lots sold slipped by over 10% to 1,591 lots from 1,774 in November 2015.
Despite this fall in sales, further data from EIG shows that auctioneers recorded increased revenues of 2% from £272m to £277m.
Taking the residential auction sector as a whole, there was a fall of 1.1% in lots offered during the last month, from 1,990 to 1,969. In terms of lots sold, this number fell from 4.7% to 1,508 to 1,437. Residential revenues were up from 7% to £239m to £255m.
UK Auction market activity slows during November
David Sandeman of EIG, said: ‘These results are indicative of the market’s form over the last six to nine months and are perhaps unsurprising given that the economic and political backdrop has changed markedly during this period.’[1]
‘It would be a brave man to predict what the future holds in 2017, but one can be sure that auctions will continue to provide a quick, transparent and effective means of buying and selling property,’ he added.[1]
[1] https://www.propertyinvestortoday.co.uk/breaking-news/2016/12/uks-property-auctions-market-softens